There are many reasons why a person should not (need not, will not…whatever) buy life insurance at all: (please note this is written tongue in cheek and some naive readers should not take it seriously) This is just to take a dig at the excuses that people give…

Life insurance is one of those common-sense products that come with a number of advantages… and very few drawbacks. That’s why millions of men and women take the opportunity to purchase coverage — to protect their loved ones in the event of their own premature death. However it is not a very popular product in India – at least Term insurance – the best product that the industry has does not sell as much as people think it should. So here is my experience as an insurance salesman…of course some are imaginary.

Still, some die-hards offer interesting reasons why they will NOT buy life insurance. Insurance professionals have listened to them all. Here are just some of the things we’ve heard over the years — some serious, some tongue-in-cheek — along with my own reactions:

“I don’t believe in life insurance!” It’s not a matter of belief. Life insurance isn’t a religion or political philosophy. It is a financial tool with a proven track record for protecting loved ones and helping assure their financial security. People who believe in providing for their families believe in life insurance.

“I want them to miss me when I’m gone!” Don’t we all? However, wouldn’t it be nice if they remembered us fondly for having provided the funds to help pay off the mortgage on the house.

My take: KING SIZE EGO EVEN AFTER DEATH!!

“Why should I make her next husband (his next wife) rich?” Good point. That’s just one reason some people select a structured payout of proceeds. That’s also, why many people protect their spouse with life insurance. Life insurance helps create viable choices for loved ones.

My take: Do you expect a 34 year old widow to close all options? You must be morbid

“Let the kids work through college, just like I did!” There are days when, if we have children, we all feel that way. However, we really don’t mean it. We devote ourselves to helping our children get a good start in life. That means helping them to get a good education. If we die prematurely, our children’s lifestyle and dreams could be threatened, along with their college dreams. Life insurance, however, can help provide the funds to make sure your children get a good education and a strong start in life.

My take: Even if you do not provide for the luxuries, you should provide for the basic education

“You have to die to win!” In the event of your death, you lose either way. However, wouldn’t it be better to make sure that your spouse and children will be financially provided for? We don’t buy life insurance for ourselves. Life insurance is for the living, for those who must continue after we are gone. Besides, if you are fortunate enough to live to a ripe old age, it makes little sense to complain that you didn’t get to use your life insurance.

My take: Does it mean if you take car insurance, you want to meet with an accident. This is hogwash. Life insurance is not because you will die – it is because your loved ones will live.

Also, with endowment life insurance, your policy can accumulate cash value that you can use for any purpose — to meet emergencies, take advantage of business opportunities, to help pay college fees, or to help supplement your retirement income. I am not suggesting you buy endowment insurance, but it is a nice product for people who do not want too many complications – BUT HAS TO BE BOUGHT only from a sensible agent. Not from a stupid agent and NEVER from a banker.

In fact, life insurance is one of those win-win financial vehicles that enables you accomplish a great deal with very little. It is the ONLY product available that can deliver a guaranteed sum of money (cash flow) to your loved ones at the very moment it is needed most.

Remember, we don’t buy life insurance for ourselves…but for the ones we love. We buy it to provide peace of mind for ourselves and a degree of certainty for our spouse and children. Life insurance helps you meet the commitments and keep the promises you have made to your family.

I keep hearing all these from many these days. Another problem is investment mixed with insurance and people are so happy that they have 12L insurance and have income from rent to take care of their family!